City water meters to get $11 million update

Published: Tuesday, February 21, 2012 at 11:40 p.m.

Last Modified: Tuesday, February 21, 2012 at 11:40 p.m.

Hendersonville City Council agreed Monday to upgrade the city’s water meter reading system, saying the $11.6 million price tag and modern technology will pay for itself and then some.

Automating the system will improve service and accuracy while reducing costs, creating a better product for customers at a lower price, City Manager Bo Ferguson told the council.

“The cost of this investment is significant at $11.6 million, but our detailed analysis shows that (with) the increased accuracy and efficiency that results … the project will pay for itself and will save an additional $1.2 million over 15 years,” he said.

The city has been approved for a loan financed over 15 years, bringing the final cost to $13.9 million.

With the current system, meter readers hit the road and check meters once a month. The new digital system would eliminate the need for readers, however, as the system sends a report to the city every six hours.

Ferguson said the savings will come from eliminating four meter reading positions (the employees would not lose their jobs, but we moved to vacant positions) and saving on the miles driven each year to read meters, as well as the gas needed for the vehicles. The vehicles would also be used for other purposes, saving the city from having to purchase new vehicles so often for their fleet.

“We will also reduce our fleet size, miles driven and substantially reduce the operational cost of adding new customers,” he said. “At the end of the project, we will be running the water system with 21 percent fewer personnel than we did in 1994, despite a significant increase in the size of our system.”

Ferguson also talked about the improvements in accuracy an automated system would bring.

“The current system slows down over time and people get more water than they pay for,” he said. “If we replace the meters with the new one, we get a 20-year accuracy warranty and all customers will be paying for the water they use.”

And since the meters take readings every six hours, the city will catch leaks faster and save customers money.

Larry Rogers, a consultant who represents about 75 businesses in Hendersonville, thanked the council for trying to improve the system, but said many business owners are concerned about the change.

“When I looked at the savings, you said you will get more than $680,000 back by replacing slow meters,” he said. “That means the users will be paying that. You guys have the monopoly. Take a good, long look at this and ask all the questions.”

“I think this is one of those things we are elected to do,” Councilman Steve Caraker said. “It dovetails nicely with our conservation efforts. It is expensive, but we will get immediate benefits.”

“People like to criticize government for being inefficient,” Councilman Jerry Smith said. “This will improve our system’s efficiency.”

“I had read about these systems a long time ago and was pleased when the city started looking at it,” added Mayor Barbara Volk. “I definitely think in the long-term, this is the way to go.”

The idea of upgrading to an automated system first came up about a year ago.

“In my time in Hendersonville, the City Council has repeatedly heard me praise them and their predecessors for their wise management of our utility,” Ferguson said. “In the four years I have been here, we have repeatedly checked and verified independent data that confirms we have some of the lowest water rates in North Carolina, while still being able to fund continued expansions and improvements to our system.”

Ferguson said the city’s ability to keep rates low is no accident, and is not simply a result of frugality.

“In fact, utilities who only focus on keeping rates low without also making wise investments in their infrastructure and operations are the ones who now suffer crumbling systems and massive rate hikes to make up for years of disinvestment,” he said. “Instead, our utility has enjoyed the right mix of thrifty spending and wise, well-researched investments in technology, infrastructure and systems to ensure the mix of outcomes our customers desire most which are low rates, great water and reliable service.”

The council unanimously agreed to have the city manager execute a contract between the city and Energy Systems Group, to submit a financing application to the State Local Government Commission and to execute a contract for financing on the project.

Now that the council has approved the project, it will be presented to the Local Government Commission on April 3 and if approved, the city will begin a 12- to 13-month implementation to be completed July 1, 2013.

<p>Hendersonville City Council agreed Monday to upgrade the city's water meter reading system, saying the $11.6 million price tag and modern technology will pay for itself and then some.</p><p>Automating the system will improve service and accuracy while reducing costs, creating a better product for customers at a lower price, City Manager Bo Ferguson told the council.</p><p>“The cost of this investment is significant at $11.6 million, but our detailed analysis shows that (with) the increased accuracy and efficiency that results … the project will pay for itself and will save an additional $1.2 million over 15 years,” he said.</p><p>The city has been approved for a loan financed over 15 years, bringing the final cost to $13.9 million.</p><p>With the current system, meter readers hit the road and check meters once a month. The new digital system would eliminate the need for readers, however, as the system sends a report to the city every six hours.</p><p>Ferguson said the savings will come from eliminating four meter reading positions (the employees would not lose their jobs, but we moved to vacant positions) and saving on the miles driven each year to read meters, as well as the gas needed for the vehicles. The vehicles would also be used for other purposes, saving the city from having to purchase new vehicles so often for their fleet.</p><p>“We will also reduce our fleet size, miles driven and substantially reduce the operational cost of adding new customers,” he said. “At the end of the project, we will be running the water system with 21 percent fewer personnel than we did in 1994, despite a significant increase in the size of our system.”</p><p>Ferguson also talked about the improvements in accuracy an automated system would bring.</p><p>“The current system slows down over time and people get more water than they pay for,” he said. “If we replace the meters with the new one, we get a 20-year accuracy warranty and all customers will be paying for the water they use.”</p><p>And since the meters take readings every six hours, the city will catch leaks faster and save customers money.</p><p>Larry Rogers, a consultant who represents about 75 businesses in Hendersonville, thanked the council for trying to improve the system, but said many business owners are concerned about the change.</p><p>“When I looked at the savings, you said you will get more than $680,000 back by replacing slow meters,” he said. “That means the users will be paying that. You guys have the monopoly. Take a good, long look at this and ask all the questions.”</p><p>“I think this is one of those things we are elected to do,” Councilman Steve Caraker said. “It dovetails nicely with our conservation efforts. It is expensive, but we will get immediate benefits.”</p><p>“People like to criticize government for being inefficient,” Councilman Jerry Smith said. “This will improve our system's efficiency.”</p><p>“I had read about these systems a long time ago and was pleased when the city started looking at it,” added Mayor Barbara Volk. “I definitely think in the long-term, this is the way to go.”</p><p>The idea of upgrading to an automated system first came up about a year ago.</p><p>“In my time in Hendersonville, the City Council has repeatedly heard me praise them and their predecessors for their wise management of our utility,” Ferguson said. “In the four years I have been here, we have repeatedly checked and verified independent data that confirms we have some of the lowest water rates in North Carolina, while still being able to fund continued expansions and improvements to our system.”</p><p>Ferguson said the city's ability to keep rates low is no accident, and is not simply a result of frugality.</p><p>“In fact, utilities who only focus on keeping rates low without also making wise investments in their infrastructure and operations are the ones who now suffer crumbling systems and massive rate hikes to make up for years of disinvestment,” he said. “Instead, our utility has enjoyed the right mix of thrifty spending and wise, well-researched investments in technology, infrastructure and systems to ensure the mix of outcomes our customers desire most which are low rates, great water and reliable service.”</p><p>The council unanimously agreed to have the city manager execute a contract between the city and Energy Systems Group, to submit a financing application to the State Local Government Commission and to execute a contract for financing on the project.</p><p>Now that the council has approved the project, it will be presented to the Local Government Commission on April 3 and if approved, the city will begin a 12- to 13-month implementation to be completed July 1, 2013.</p><p>Reach Harbin at 828-694-7881 or john.harbin@blueridgenow.com.</p>